CBH grows links with Elders

Perth-based agribusiness cooperative CBH Group has ventured into the South Australian market through a marketing venture with agribusiness company Elders.

The new venture reflects the efforts of both organisations to diversify their operations and coincides with an increasing ownership link.

Pacific Agrifoods, a joint venture between CBH and Indonesia’s Salim Group, has increased its shareholding in Elders parent company Futuris. A series of share purchases has lifted its holding to 33.5 million shares, equal to 5.09 per cent of Futuris.

CBH’s South Australian move also coincides with regulatory approval for the merger of Ausbulk and ABB, the two big grain handling and marketing groups in that State.

The merger was subject to undertakings that provide for fair and reasonable access to port storage and handling services for other grain exporters. The new venture is designed to combine Elders’ local service and security of payment with CBH’s record in grain marketing.

Last year CBH handled 4.2 million tonnes of grain through its trading and marketing activities in the domestic market.

Andrew Young, general manager of CBH’s grain trading arm AgraCorp, said: “WA growers have already benefited from greater choice in the past few seasons for wheat and other grains and we are delighted to work with Elders to be able to offer some of these products in South Australia”.

Elders national grain marketing manager Mark Thiele said introducing greater choice in South Australia was now more crucial as industry rationalisation continued to polarise the major players and reduce the available options.